19 March 2008

BANKS COULD SAVE SMALL POST OFFICES

As part of the Campaign for Community Banking Services’ (CCBS’s) shared banking proposition, which the banks, government and Post Office Ltd continue to resist or neglect, many small rural post offices could be saved and, more importantly, sustained.

The lowest tier of shared banking – see ‘Bank Closure Problems-One Solution Fits All’ at www.communitybanking.org.uk/reports.htm - envisages a shared franchise directed solely at increasing income flow at the small post office sites as this would overcome the understandable reluctance of many banks (see Note 3) to enter into a nationwide agreement now that the Post Office has chosen to become a direct competitor to the banking sector in the sale of own brand financial products such as personal loans, credit cards, investment bonds, foreign exchange and mortgages which are sales priorities in the banks’ own branches.

Instead of just voting symbolically against the inevitable, MPs and others would be better advised to push for a sensible solution based on wider sharing which could become practicable if all parties can be propelled to the negotiating table. The need is urgent, for future bank and post office closures as well as the current wave.

Ends

Notes for Editors :

1. CCBS is a coalition of 25 national organisations concerned about bank branch closures, community sustainability, financial exclusion and the environment.
2. The publication referred to was launched at the House of Commons 27 November 2007.
3. Major banks HSBC, RBS/NatWest, HBOS and others have no agency arrangements with post offices beyond the basic bank accounts for the financially excluded and none of the majors allow small business banking at post offices.

Contact:
Derek French
Director CCBS 
T  01582 764760
www.communitybanking.org.uk